Wal-Mart lower despite earnings rising by 9%

Clean up on aisle 3.

Wal-Mart’s third-quarter earnings rose by 9%, topping consensus, though shares traded lower Thursday after its revenue and Q4 guidance failed to meet analyst expectations. Earnings came in at $1.08 per share while analysts were expecting a $1.07 and revenue increased 3.4% to $113.2 billion, short of the consensus estimate of $115 billion.

On top of the top-line miss, management also indicated that issues surrounding alleged violations of the U.S. Foreign Corrupt Practices Act appear to have grown. Already battling claims in Mexico, the retailer said, “Inquiries or investigations regarding allegations of potential FCPA violations have been commenced in a number of foreign markets where we operate, including but not limited to Brazil, China and India.”

CFO Charles Holley said the “matters are under review and it would be inappropriate to comment until they are resolved.”

Looking ahead, management raised the low-end of its full-year earnings guidance, now expecting a range of $4.88-4.93 per share. For the coming quarter, it expects earnings of $1.53-$1.58 per share, while analysts are expecting $1.59.